Saturday, July 24, 2010

Gaviscon prescriptions investigated by Office of Fair Trading Business

GP in surgery

Gaviscon prescriptions are underneath glow from the OFT. Photograph: Martin Godwin

The Office of Fair Trading has claimed that Reckitt Benckiser, one of the world"s greatest consumer products firms, abused the widespread on all sides to stop doctors prescribing cheaper general versions of the Gaviscon heartburn medicine.

The foe watchdog voiced this sunrise that it has sent a "statement of objections" to Reckitt, alleging that the association on purpose prevented doctors from prescribing cheaper alternatives to Gaviscon.

The box centres on the approach that medicines are prescribed in the UK. The NHS used a computer complement that allows GPs to poke for a obvious branded product, and afterwards supply a cheaper general opposition if any are available.

The OFT claims that Reckitt withdrew Gaviscon Original Liquid from the NHS medication channel prior to the general name had been assigned. This equates to that when doctors searched they usually found Gaviscon Advance Liquid, that is patent-protected - definition no general rivals are available.

Reckitt – whose products additionally embody Dettol, Clearasil and Nurofen – pronounced it is reviewing the statement, that has not been done public.

"Reckitt Benckiser believes it competes sincerely and inside of the minute and suggestion of the law in all of the operations, and has co-operated entirely with the OFT via the inquiry," pronounced the association in a statement.

The OFT forked out that it is as well early to contend either Reckitt has damaged foe law.

"This box raises poignant and formidable foe issues relating to the supply of medication drug to the NHS," pronounced Simon Williams, comparison executive for products at the OFT.

"Reckitt Benckiser will right away have a full event to reply to the due commentary prior to we confirm either foe law has in actuality been infringed," Williams added.

Under the Competition Act, a association found guilty of abusing a widespread on all sides in the marketplace could be fined 10% of the turnover. In practice, though, any fines are most smaller.

Reckitt had tellurian revenues of £7.7bn in 2009. Its last monetary inform showed that Gaviscon was one of the company"s strongest-performing products last year.

In Mar 2008, leaked emails appeared to show that Reckitt employees on purpose attempted to check the key of a general opposition to Gaviscon. A comparison whistleblower from the drug association claimed that this had cost the NHS millions of pounds.

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